DB Shares Seesaw After Settlement Uncertainty

Shares of Deutsche Bank seesawed Wednesday after a report the embattled German lender was eyeing a lower settlement with U.S. authorities, adding to speculation on a possible outcome for its litigation issues.

German markets news publication Der Platow Brief said on Tuesday that Deutsche Bank was looking at a settlement of $4 billion to $5 billion by end of October with the U.S. Department of Justice (DOJ). The newsletter, which was reported by Reuters, also said that the bank was considering scrapping bonuses and raising fresh capital but it did not cite sources.

Shares of Germany’s biggest bank by assets fluctuated between gains and losses on Wednesday, continuing a spate of market volatility experienced by the bank since reports last month that it could face a penalty of up to $14 billion from the DOJ for the misselling of mortgage-backed securities in the run up to the financial crisis of 2008.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza